Brokers said funds were seen covering their pending long positions on the last settlement in monthly equity derivatives segment of calendar year 2013.

The absence of foreign funds from the market due to year-end holidays affected trading volumes, they added.

Power-related stocks, led by Tata Power that shot up by 4.06 per cent, saw heavy buying. Reliance Power (1.40 per cent) and BHEL (1.33 per cent) were among notable winners.

Sectorally, the BSE Power sector index gained the most by rising 1.06 per cent, followed by Consumer Durable index (0.88 per cent), Banking index (0.53 per cent) and Metal index (0.50 per cent), among others.

The BSE Midcap and Smallcap indices went up by 0.41 and 1.15 per cent respectively.

Sugar stocks rose after government today okayed modalities for the beleaguered industry to avail interest-free loans to the tune of Rs 6,600 crore from banks for effecting timely payment to cane growers.

(Reuters) - Indian shares edged up on Thursday as blue chips from Infosys to BHEL extended a rally on continued strong buying by foreign investors, although volumes were thin in a holiday-shortened week.

Foreign institutional investors (FIIs) have been net buyers in almost every session so far this month, bringing their net purchases to